BankWatch assigns LC-A+ to NISP bond

BankWatch assigns LC-A+ to NISP bond

JAKARTA (JP): Thomson BankWatch, the New York-based rating
agency, announced Saturday it had assigned a LC-A+ rating to Bank
NISP's Rp 150 billion (US$62.5 million) bond.

At the same time, the bank's short-term local currency debt
and intra-country issuer ratings were affirmed at LC-2 and LC-B/C
respectively.

According to the rating agency's statement, Bank NISP, which
is listed on the Jakarta Stock Exchange, enjoys solid financial
characteristics and is guided by a conservative and capable
management team.

"While the bank's firmly held regional franchise is one of its
main strengths, it recognizes the commercial imperatives arising
from increased competition and has taken steps to expand its
network into other parts of the country and to broaden its
customer base through efforts such as its joint venture with OCBC
Bank of Singapore," the statement said.

Philippe Delhaise, the president of the rating firm, said that
the bank, headquartered in Bandung, West Java, had long exhibited
above average profitability ratios, which although falling
slightly in 1996, still remained high.

With a sound asset quality, comfortable liquidity and a strong
capital base, the bank was well positioned for future growth, he
said.

Customer deposits continue to provide the bulk of the bank's
funding although substantial efforts had been made to diversify
and lengthen the funding mix in recent years.

Delhaise said the main shareholders remained strongly
committed to the bank and the publicly held portion of the
capital base had been further deepened recently, enhancing its
longer-term capital-raising ability. (hen)